Bitcoin Price Rejection At $10,000 Seeks Fresh Demand For A Bounce To $10,500

2020-02-25

Bitcoin price weekend session struggled with the resistance at $10,000 culminating in losses to $9,600 on Monday.

Minor recovery from the intraday support at $9,600 stalls short of $9,800.

Bitcoin price alongside other cryptocurrencies advanced on Sunday as bulls stayed woke. The weekend session was characterized by minor up and down movements but key resistance zone such as $10,000 remained at bay. However, the trading session on Monday (Asian) culminated in losses with Bitcoin diving to lows close to $9,600. The move has been interpreted as a blow to the buyers who had wished to start the week with a jump above $10,000.

BTC/USD is trading at 9,741 after a shallow recovery from the support provided by the 61.8% Fib retracement level of the last drop from $10,523.69 to $8,201.93 around $9,600. Bitcoin price has been unable to sustain the action that saw it rocket to highs above $10,500 a couple of weeks ago. Instead, the price is spiraling within a new descending channel on the 4-hour chart.

BTC/USD 4-hour chart

Besides, the 61.8% Fibo, Bitcoin’s downside is supported by an ascending trendline that has managed to stay intact since January. Meanwhile, selling activities continue to gain momentum especially with the Relative Strength Index (RSI) diving under 50 (average level). The double-cross of the 50 SMA under the 100 SMA at $9,93.87 suggests that Bitcoin could settle under $9,900 before the next assault is launched on $10,000. Moreover, the widening moving average gap confirms the increased selling activity.